Tata Steel said that it would pump £550 million and a 33 per cent stake in the UK subsidiary to the retirement fund. However, the deal is subject to formal approval by The Pensions Regulator, but Tata said it expected to get the approval shortly.
“After prolonged and intense discussions and negotiations with the BSPS Trustee, the Pensions Regulator (TPR) and the Pension Protection Fund (PPF), the key commercial terms of a Regulated Apportionment Arrangement (RAA) have been agreed in principle between Tata Steel UK Limited (TSUK) and the BSPS Trustee. These terms are in line with the published principles of TPR and PPF,” said Tata Steel in a filing to the Bombay Stock Exchange.
“If agreement is reached and the necessary approvals are obtained, the RAA will become effective once agreed conditions are satisfied, including the payment by a member of the Tata Steel group of an agreed settlement amount of GBP 550 million to the BSPS and the provision of a 33 per cent equity stake in TSUK,” it added.